This morning, September 5, the Quang Tri Province Branch of the Vietnam Bank for Social Policies (VBSP) disbursed VND1.2 billion to 21 households in Trieu Phong District to build clean water and rural environmental sanitation projects. These are the first households in the province to receive loans under the Prime Minister's new rural clean water and environmental sanitation credit policy.

The first household in Trieu Thuan commune, Trieu Phong district received a loan to build a clean water and environmental sanitation project at the new loan level - Photo: ML

Decision No. 10/2024/QD-TTg of the Prime Minister dated July 15, 2024 on credit for clean water supply and rural environmental sanitation takes effect from September 2, 2024. Accordingly, households residing in rural areas that do not have water supply or sanitation works or have damaged ones that need to be newly built, upgraded, renovated, or repaired will be able to borrow capital from the Social Policy Bank. The maximum loan amount is VND 25 million/1 type of work/customer.

Thus, customers borrowing capital from this program can borrow up to 50 million VND for 2 clean water and sanitation projects, instead of only 20 million VND as before. The loan interest rate is 9%/year; the loan term is agreed upon by the Vietnam Bank for Social Policies with the customer but the maximum is 60 months.

According to Director of the Provincial Social Policy Bank, Tran Duc Xuan Huong, in order to promptly disburse capital according to the new central policy, immediately after the Prime Minister issued Decision No. 10/2024/QD-TTg, the Quang Tri Social Policy Bank Branch closely followed the guiding documents of the Vietnam Social Policy Bank, directing the district-level Social Policy Bank transaction offices to urgently coordinate with socio-political organizations entrusted to review subjects, provide guidance on loan applications, loan procedures and processes, repayment terms, and repayment levels to ensure simplicity, clarity, and ease of implementation for the people.

Through a demand survey, it is expected that in September 2024, the whole province will disburse according to the new loan level of the clean water and environmental sanitation program of about 45 billion VND for 900 households.

As of August 31, 2024, the cumulative number of households and loan turnover for the clean water and environmental sanitation program according to the old lending level at the Social Republic Bank, Quang Tri branch, was VND 155,381 billion with 7,810 households borrowing capital.

With the newly increased loan level, this capital source will help many households have enough funds to build and install standard water systems and sanitation facilities, thereby improving the quality of life of the people, contributing to the implementation of the National Target Program on New Rural Development.

Mai Lam